If the capital stock remains _______ while labor _______, the new labor will likely be _______ productive than the old labor because of diminishing returns.

Question

Quizplus · Accepted Answer

The correct answer is D because the question states that the new labor will likely be less productive than the old labor because of diminishing returns. This means that the capital stock must be fixed, as if it were variable, then the new labor would be more productive than the old labor. Additionally, the question states that labor increases, so the correct answer must be D, which states that the capital stock is fixed and labor decreases.

If the Capital Stock Remains _______ While Labor _______, the New

If the Capital Stock Remains _ While Labor _, the New